Contracts II

Restatement Second of Contracts § 139


Enforcement by Virtue of Action in Reliance

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  1. A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce the action or forbearance is enforceable notwithstanding the Statute of Frauds if injustice can be avoided only by enforcement of the promise. The remedy granted for breach is to be limited as justice requires.
  2. In determining whether injustice can be avoided only by enforcement of the promise, the following circumstances are significant:
    1. the availability and adequacy of other remedies, particularly cancellation and restitution;
    2. the definite and substantial character of the action or forbearance in relation to the remedy sought;
    3. the extent to which the action or forbearance corroborates evidence of the making and terms of the promise, or the making and terms are otherwise established by clear and convincing evidence;
    4. the reasonableness of the action or forbearance;
    5. the extent to which the action or forbearance was foreseeable by the promisor.